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Technology Stocks : Intel Corporation (INTC)
INTC 38.16+2.5%Nov 7 9:30 AM EST

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To: Amy J who wrote (129819)3/12/2001 12:42:20 PM
From: Saturn V  Read Replies (1) of 186894
 
Hi Amy,
OT - Raising Money
Just be careful about running out of money. The best time to raise money is when you dont need it. When you dont need money, lenders like banks and VCs will run after you. But when you really need the money no one will give it you. Even if you get the money the lenders will subject you the third degree, and you may get Shylockean terms. I have seen this happen time and time again.

Once again I wish you and you enterprise the best of luck.

The stock market and the Hi Tech sector continues to be in free fall. What I am hearing about the communication business is that in February "some one turned off the switch", and all new orders stopped abruptly. The blood bath in Cisco and other communication companies is not over, and it may take a year for a turn around in the earnings of the communication companies. Since these companies had staffed themselves for massive growth, there are going to be major layoffs and extreme pessimism in the glamorous communication business !

I hope that the CPU business turns around sooner,since the customer CPU inventory problems are less severe than in the communication sector. The Intel stock price probably will probably not return to its highs for 18 months. For Cisco the old highs will not return for several years. The era of extreme optimism is over for several years. The sky highs PEs are gone when the realization sinks in that all HiTech and the New Economy companies are also cyclical, perhaps even more so than the Old Economy.

Until the market bottoms I shall keep my fingers crossed.
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